Bitcoin value reaches an all-time high compared to the dollar

Posted February 28, 2013 - 15:09
by
Shane McGlaun

Digital currency used in place of the dollar isn't exactly a new concept, especially online.

Indeed, Microsoft has used its own points as a sort of alternate currency for Xbox 360 buyers for a number of years, while a number of cross-platform games following the same strategy for points and auction houses.

One of the most popular forms of alternate digital currency introduced in recent years is known as Bitcoin. The company has been in the news in recent months with hackers reportedly making off with about $250,000 worth of digital currency in September of last year.

More recently, Mega announced that it would be taking Bitcoin as a form of payment.

Interestingly, this week Bitcoin hit an all-time high in terms of value compared to the US dollar. Indeed, the exchange rate for the virtual currency and the US dollar climbed past $32 for the first time ever. The previous all-time high was hit in June of 2011 when the exchange rate was set at $31.9099 for the US dollar.

At its lowest point, the exchange rate was under two dollars in 2011 but the value of Bitcoin has risen over the last several months as the currency makes its way to new markets.

Despite the $250,000 virtual money heist last year, Bitcoin has remained relatively secure. Other than Mega, a number of other major websites also accept the virtual currency for payment, including Reddit and Wordpress.com.

Last year a French bank also received clearance to become a Bitcoin exchange - helping to broaden the availability for the virtual currency. To be sure, the bank became certified soon after the total circulation for the virtual currency hit the 2.5 million mark.